Samantha Rowan

Alternative lenders are backing the city's luxury condo boom.

In a newly published white paper, the New York-based advisory company cites the costs of scaling lending platforms, the impact of more complex capital structures, and a rise in specially serviced loans. 

Timothy Sloan, head of commercial real estate debt at Fortress Investment Group, says the firm sees the strongest long-term outlook for senior loans. But in today’s market, its history as a distressed investor will still be critical.

The Federal Reserve’s decision to cut interest rates by 50 basis points is not expected to have a significant impact on commercial real estate lending and borrowing.

An expected 25-basis point rate cut at the Federal Reserve’s next meeting will be pivotal as private equity funds seek to deploy dry powder.  

The New York-based investment manager will buy whole loans and performing- and non-performing notes, and provide additional financing through the fund.

Alternative lenders and the commercial mortgage-backed securities market could help plug the gap, per a report released this week. 

PERE Credit’s inaugural Borrowing Barometer survey is designed to take the pulse of the US real estate financing market from those that use debt or raise it on behalf of those that use it.

While prices and the availability of financing have fallen as interest rates remain high, the industrial sector is on a different trajectory, BKM Capital Partners said in a white paper released this week.

The Miami-based alternative lender anticipates a rise in distressed transactions – but in a way that is very different than in past cycles.